how does hydraulic systems work?
That's a complicated question but it's essentially leverage. A smaller cylinder moves fluid into a larger one.
The hydraulic system that is used for suspension, such as cars and so forth is simply a piston that slides into a container of fluid. When it slides in, or in the case of a car is pushed down from the car, then the fluid inside the container gains a pressure increase. In turn rejecting the piston back out, creating a smooth hydraulic suspension system.